STATE
POLICIES

ARUNACHAL PRADESH

    INDUSTRIAL POLICY OF ARUNACHAL PRADESH 1994
    Introduction
    Policy Resolution
    Administrative Measures
    Date of Effect, Definition and Eligibility Criteria
    Incentives
    Information source: Government of Arunachal Pradesh
     

    Introduction

    1. Arunachal Pradesh is the largest state in terms of geographical area, among North Eastern States, having an area of 83743 Sq.Km., with a population of 8.65 lacs. Industrially it is still one of the most backward state in India, though it has successfully launched various socio-economic development programmes. These programme shave resulted in a new awareness in the masses and the literacy rate has also started rising and as per 1991 Census it stands at 32.8. The people of the state, therefore, have started nursing aspirations to come at par with their counterparts elsewhere in the country so far as overall economic development is concerned. Therefore, the need for a well doctrined Industrial Policy is felt all the more necessary at this present juncture of socio-economic transaction of the state.

    2. The Industrial Policy Resolution presented in subsequent paragraphs has been prepared keeping in view the following factors, peculiar to the state of Arunachal Pradesh.

      1. Rich resource endowment so far as forest, minerals and other natural resources are concerned.
      2. Extremely difficult terrain of the state resulting in glaring transport and communication bottlenecks.
      3. Easy availability of hydro power in the medium term as the state in endowed with vast potential for hydropower for exploitation of which one large project is already underprogress.
      4. Endless scope for agro based industries specially in the plantation sector.
      5. Special place of the state in the overall ecosystem of the North Eastern Region.

    3. This policy resolution is the first of its kind and will be known as "Industrial Development Policy of Arunachal Pradesh 1994". This policy resolution shall remain valid for a period of five years from the date of its announcement subject to modifications/amendments made in between if felt necessary.

    Policy Resolution

    1. In order to meet genuine aspirations of the local people, top priority will be assigned to the all round development of industrial sector with emphasis on economic and commercial exploitation of its natural resources in such a manner so as not to disturb permanently the overall ecological balance within the state and at the same time maximise benefits to the society.

    2. While aiming at an all round development, interests of the local people, in the matter of employment opportunities and gainful self employment in industrial and allied sectors, will be given high priority.

    3. Industries based on plantation, agriculture, horticulture, medicinal plants, etc. shall be reserved exclusively for Arunachal Pradesh Tribal entrepreneurs.

    4. Special thrust will be given for the development of priority sector industries. To begin with, industrial units in the following sectors will be considerd as the priority sector industries.

      1. Agro based industries specially plantation based such as tea, coffee, rubber, etc.
      2. Industries based on locally available raw materials.
      3. Industries manufacturing goods which are having local demand and demand in neighbouring states.
      4. Industrial units devoted to revival and improvement of handloom and handicraft sector either directly or indirectly.
      5. Electronics industries in view of unpolluted dust free environment.
      6. Industries based on minor forest produce keeping in view of the overall ecosystem of the state

    5. Keeping in view certain inherent problems viz. difficult terrain, transportation and communication bottlenecks, thin and scattered market, lack of adequate infrastructure etc. which put any industrial unit to a disadvantageous position, the Govt.has devised a package of incentives for all eligible industrial units so as to make them commercially viable and competitive. Details of these incentives are outlined in Part IV of this document.

    6. The state recognised that adequate infrastructure is a pre-requisite for attracting investment both in the Public and Private Sectors in the state. A programme for the development of the desired infrastructure including the establishment of industrial estates, industrial growth centres, etc. would be taken up on priority basis.

    7. The Government will give special emphasis to plantation based industries such as tea, coffee, rubber etc. Similary industries which are set up for processing of horticultural agricultural and other plants such as medicinal plants, aromatic grasses etc. will be given special emphasis and priority in matters of state patronage and facilities.

    8. Reserves of all types of minerals with which the state is endowed abundantly by nature such as Dolomite, Limestone, Graphite, Coal, Mineral Oil, Natural Gas etc. will be commercially exploited through the Arunachal Pradesh Mineral Development and Trading Corporation Limited.

    9. Special efforts will be made to strengthen, upgrade and modernised handloom and handicrafts sectors. For achieving high quality as well as quantity (both in value and volume) of handicrafts and handloom products, Government efforts will be focused on design development, skills development and upgradation, quality control, market research and market expansion timely availability of quality raw materials and credit facilities to our craftsmen and weavers. Similar efforts will be made for the development of village and small industries as well as Sericulture based activities.

    10. Government will make special efforts for developments of local entrepreneurial, managerial and technical skills. For this purpose special training and educational programmes will be launched in collaboration with various training and educational institution. Priority will be given to women for all such programmes. The existing institution a set up within the state which includes I.T.Is and R.I.D.C will be improved and strengthen to get optimum results.

    11. The existing financial institutions including the commercial and Coop. Banks will be asked to improve credit-deposit ratio in order to ensure smooth flow of credit for new industrial projects, village industries and rural artisans. The Districts Industries Centres and Financial Institutions will be made to work in close liaison and cooperation. The state Industries Department will continueto provide credit facilities to small enterpreneurs till all the areas are adequately covered by the banking system.

    12. The State Government will welcome foreign investment and technology in the development of basic industrial infrastructure such as Power, Communication and High Tech Industries.

    13. The State Government will adopt liberalised system of licensing policy for all kinds of eco-friendly industries as per Central Government pattern (except the item restricted by the Govt. of India and items the State Govt. deems suitable for licensing)for speeding up of the industrialisation process in the State. The State recognises that the exemption and liberalisation of licensing policy will be helpful for the upcoming entrepreneurs for quick investment decisions.

    Administrative Measures

    1. The State Govt. will undertake a thorough review of the existing institutional set up for the promotion of industrial activities and take corrective measures wherever warranted.

    2. The performance of the Department of Industries as well as other organisations under its preview will be closely monitored and analysed in the context of policy guidelines detailed in Part II. Wherever, it is found necessary to take services of consultants, the same will be obtained.

    3. A State level 'Industrial Advisory Board' comprising of the heads of the Departments of Industries, Finance, Agriculture, Horticulture and Animal Husbandry, Power, Forest, Science and Technology and representatives from Banking and Financial Institutions, Consultancy organisations, Voluntary organisations, Chamber of Commerce and Association of Industries etc. will be formed to discuss and to suggestion the issues pertaining to industries development of Arunachal Pradesh. This Board will be headed by the Minister of Industries and will meet once a year.

    4. On the lines of State Level Industrial Advisory Board, a District Level Industrial Advisory Board will also be constituted in all the District.

    Date of Effect, Definition and Eligibility Criteria

    1. The Industrial Policy of the Government of Arunachal Pradesh will come into force with effect 1st April 1994. The package of incentives therein offered referred to as "Incentive Scheme 1994" shall come into force from the date of declaration of this policy.

    2. Eligibility:

      Only new units set up on or after 01-04-94 located at any place of Arunachal Pradesh and existing units undertaking expansion, modernisation or diversification shall be eligible for Incentive Scheme of 1994. However, the existing units which have not completed five years of commercial production as on 01-04-94 are also eligible for the incentive scheme. The unit must be registered. An industrial unit which starts commercial production on or after 01-04-94 would be considered as New Unit. Any unit which is/was in commercial production at any time prior to 01-04-94 will be considered as existing unit and will be eligible for incentives, provided the investment on modernisation/expansion does not exceed in any case more than 50% of total fixed capital investmentof existing unit. Capital investment here refers to investment made in respect of Factory, Building and Plant and Machinery. Those units/factories whose registered offices are located outside Arunachal Pradesh shall have to keep copies of all their relevant documents in the unit/factory premises for claiming the incentives under the incentive schemes.

    3. Definition and eligibility criteria which is not clear and additional/further expression/interpretation shall remain reserved with the Department of Industries, Govt. of Arunachal Pradesh.